D102 Financial Accounting Wgu Study Guide Rated A+

What is an owners' equity item? Accounts receivable Loans payable Capital stock Cash {Ans: Capital Stock}On July 10, goods were sold for $10,000. Cash of $4,000 was received, and the $6,000 remainder was on account. The customer returned the goods before paying any of the remaining $6,000 on account. Which debit or credit should be included in the journal entry on the seller's books to record the return of the goods? {Ans: Credit accounts receivable for $6,000}The revenue recognition principle states that revenues are recorded when two main criteria have been met. One of those criteria is that cash has been collected or collectability is reasonably assured. What is the other criterion? {Ans: The earnings process is substantially complete.}A company has a five-year, $200,000 note payable on which it has been making annual interest payments of $15,000. This is the final year of the note, and the company has made a $215,000 payment to pay this year's interest as well as to repay the note itself. What is needed in the journal entry to record this $215,000 cash payment? {Ans: Debit to interest expense for $15,000}Why are daily cash deposits important? {Ans: They prevent the